For nearly 140 million retirees in enterprises and institutions across the country (data at the end of 2022), the level of pension treatment directly determines their quality of life and pension security ability to a large extent.
As the economic basis for retirees to enjoy their old age, in real life, we often use the replacement rate of pensions as an important reference index to measure the difference in the level of living security before and after retirement.
Under normal circumstances, the higher the replacement rate of pensions, the insured can maintain the level of living benefits before retirement after retirement; on the contrary, the lower the pension replacement rate, the insured personnel after retirement, the old have support, the old has something to rely on, and there is no way to talk about it.
Therefore, from this point of view, retirees with relatively high pension benefits can often guarantee their own basic livelihood, while retirees with relatively low pension benefits may face a series of pension problems.
Measures for the calculation and payment of basic pensions for retirees
At the present stage, the personnel of organs and institutions within the system and the personnel of enterprises outside the system implement the same basic old-age insurance system, that is, the basic old-age insurance for urban workers. According to the policy provisions of the current basic old-age insurance system for urban employees, the insured personnel of enterprises and institutions can go through the retirement procedures and receive the basic pension on a monthly basis under the premise that they have paid contributions for 15 years and meet the retirement age at the same time.
It is understood that after the merger of the pension system, the state has reformed the payment methods and treatment methods of the insured personnel of government organs and institutions, so as to make them consistent with the employees of enterprises. Generally speaking, the basic pension insurance treatment of retirees mainly includes two parts, namely the basic pension and the personal account pension;
(1) Basic pension = average monthly salary of employees in full-caliber urban units in the province where the insured person retires in the previous year * (1 + average contribution index) / 2 * cumulative insurance payment period * 1%
(2) Personal account pension = the cumulative amount of personal pension account storage at the time of retirement of the insured person / the number of pension months corresponding to the retirement age
(3) Transitional pension = the average monthly wage of employees in full-caliber urban units in the province where the insured person retires in the previous year * deemed contribution index * deemed payment period * transition coefficient
Normal pension adjustment mechanism
According to the data, by the end of 2022, the average monthly basic pension level of retirees in mainland enterprises is only about 3,000 yuan. According to the current price level and taking into account the growing basic pension needs, the pension of 3,000 yuan/month is really not enough to maintain the daily basic life, not to mention the old people have support and dependence.
Therefore, in order to further improve the basic pension level of retirees and ensure their basic livelihood, the state has established a normal adjustment mechanism for the basic pension of enterprise retirees since 2005 that is compatible with factors such as the average wage growth rate and price changes of on-the-job employees, and in 2023, the basic pension of retirees will be increased for 19 consecutive years.
It is worth expecting that in this policy context, the basic pension level of retirees is expected to usher in a new round of adjustment on the basis of 2023 by 2024, that is, to achieve "20 consecutive increases". Moreover, it has to be mentioned that according to the current basic pension system and treatment adjustment methods, retirees are expected to usher in the repayment of 2 pensions in 2024.
In 2024, retirees are expected to reissue 2 "pension money"
(1) "Make up the difference" after the recalculation of the calculation and payment base of basic pension insurance benefits for urban employees
According to the past historical experience, the announcement time of the basic pension insurance treatment of urban workers in 31 provinces and cities across the country is mostly concentrated in November ~ December of each year, and the new calculation and payment base before the announcement of the retired personnel, the social security agency will be calculated and issued in accordance with the calculation and distribution base of the previous year, and after the announcement of the new calculation base, it will be re-calculated according to the new standard, and then the difference will be made up.
For example, if an employee of an insured enterprise in Shenzhen retires in June 2023, the social security department will use the calculation base in 2022 as a reference when calculating his basic pension benefits. It is understood that in December 2023, the Shenzhen Social Security Bureau announced the calculation and payment base standard of the basic pension insurance for enterprise employees in 2023, which is 11,010 yuan / month.
That is to say, if the local government starts the recalculation and compensation of the basic pension benefits of enterprise retirees in March 2024, then the retiree will receive the difference in pension benefits for the 10 months from June 2023 ~ March 2024. However, it should be noted that the time for reissuance is not uniform in various places, some have already completed the repayment, and some have not yet started.
Of course, how much pension will be paid back to different retirees in different co-ordination areas mainly depends on the length of the reissue month, the level of the new calculation base, the length of the individual payment period and the level of the payment base. The figure below shows the actual amount of reissue by a retiree in Shenzhen, which can be seen to be reissued at one time of more than 1,000 yuan, although it is not much from the point of view of the amount, but at least it is a good protection of the basic pension rights and interests enjoyed by retirees.
(2) The "increase in money" that is reissued after the general adjustment of pensions
In 2024, will the basic pension of retirees be adjusted again on the basis of 2023? Judging from the official caliber, there is a high probability that it will continue to rise.
It is understood that during the two sessions of the National People's Congress on March 5, the State Council publicly released the government work report, which clearly mentioned that the basic pension level of retirees will continue to be increased in 2024. This news has been announced, which not only caused widespread heated discussions among retirees, but also indicated that the "20 consecutive increases" of pensions for retirees are almost certain.
Up to now, the Ministry of Human Resources and Social Security has not issued a notice on adjusting the basic pension of retirees in 2024. However, as we all know, the growth level of the average monthly wage of on-the-job workers, price changes and the growth rate of GDP are the key factors affecting the rise of the basic pension of retirees.
According to data released by the National Bureau of Statistics, the growth rate of the mainland's GDP in 2023 will be 5.2%, the national household wage income will increase by 7.1% year-on-year, and the national consumer price index will increase by 0.2% year-on-year. Based on these points, we can basically determine that the basic pension of retirees will continue to rise in 2024.
In addition, we can also refer to the historical increase in the basic pension of retirees to estimate the national adjustment ratio of the basic pension of retirees in 2024. Judging from the overall adjustment ratio of pensions in the past five years, they are 5%, 5%, 4.5%, 4% and 3.8%, all of which are maintained at 5% and below. Therefore, under the trend of relatively slowing down the growth rate of basic pensions for retirees, some professionals predict that the national adjustment ratio in 2024 may remain at about 3.5~4% of the monthly per capita pension of retirees in 2023.
It should be noted that the national adjustment rate is not the actual increase in retirees. According to the past adjustment experience, the human resources and social security and financial departments of 31 provinces and municipalities across the country will generally announce detailed adjustment plans in June and July in accordance with the unified deployment of the state and in combination with the actual situation of their own regions, and will complete the adjustment and repayment of the basic pension for retirees before the end of July.
That is to say, retirees within the scope of the adjustment will receive the pension increased by the general pension survey before the end of July. Moreover, the adjustment of the pension is generally based on the annual unit, that is, if a co-ordination area arranges repayment from July, then the money received by the retirees will be the sum of the monthly pension increase in 1~7 months.
epilogue
In short, for the retirees of the majority of enterprises and institutions, whether it is the "making up the difference" after the recalculation of the basic pension insurance treatment base, or the "increase in money" after the basic pension is repaid, it is related to the pension treatment of retirees. However, as mentioned in the article, retirees in different co-ordination areas, different payment periods, different payment bases, and different pension benefits, the actual amount of the difference and the amount of repaid money may be different. In addition, it should be noted that although the amount of these two repaid money is generally not too high, it can be regarded as the special care of the state for the retired group. Therefore, retirees in front of the screen may wish to pay more attention to the information related to pension benefits, after all, it is not harmful to know more about themselves.
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